The Discounted Option Price is:
£1.82
Introduction to Save As You Earn.
Save As You Earn (SAYE) is now open until 5pm on 2 November 2022. This Scheme’s Option Price has been confirmed as £TBC.
SAYE is a great opportunity for eligible colleagues to buy shares in Tesco at a discounted Option Price and share in future successes. You can choose to save between €12 and €500 from your pay every four weeks, over three or five years. When your saving period ends, you’ll have the opportunity to use your savings to buy Tesco shares at the discounted Option Price shown above, or you can take your money back.
All colleagues with at least three months’ continuous service on the 14 October 2022 can take part.
The Scheme that we’re launching today operates in the same way as the January 2022 scheme. As previously advised, the SAYE scheme can no longer be offered to colleagues as a tax-advantaged scheme, this is as a result of Revenue mandated changes implemented last year to company share saving schemes.
We know that you value SAYE as a way of saving, so we’ve worked hard to keep this Scheme in place for you, but with some differences from before to ensure we remain compliant with updated rules set out by the Revenue Commissioners. It still provides the opportunity to buy shares at a discounted option price and then sell them at the end of the saving period.
What has stayed the same.
When we first introduced the new SAYE Scheme earlier this year, we tried to maintain as many of the benefits of the previous Scheme as permitted by the Revenue Commissioners. In addition, don’t forget that as part of our Employee Assistance Programme you have access to a Qualified Financial Advisor.
Your savings are taken from your pay after tax, PRSI & USC has been deducted (your net pay), every four weeks (or every week if you are weekly paid) and put into an SAYE account (held by Equiniti Share Plan Trustees Limited) in your name. Your savings will start being taken from your pay in February 2023.
You can save between €12 and €500 every four weeks, or up to €125 for weekly paid colleagues, over a three or five year saving period. If you are saving for three years, you will need to make 36 four-weekly payments. If you are saving for 5 years, you will need to make 60 four-weekly payments. The maximum amount that can be saved every four weeks across all SAYE Schemes is €500.
* If you already participate in SAYE and want help to decide how much you can afford to contribute, details of your current SAYE Schemes are available online through the ESP Portal - click here. Although the maximum amount that can be saved every four weeks across all SAYE Schemes is €500, if you’re saving into the 2017 5-year SAYE or the 2019 3-year SAYE and haven’t missed any payments, the amounts you’re saving into these Schemes won’t count towards the €500 limit.
At the end of your saving period, you’ll have the opportunity to use your SAYE savings to buy shares at a discounted Option Price. This is set on the invitation date.
Your money is safe and if your circumstances change at any point during the three or five year savings period, you can get all your money back.
If you leave Tesco at any time during your saving period due to redundancy or retirement, you have the option to use your savings to buy a reduced number of Tesco shares at the discounted Option Price within six months of leaving or get all your money back.
If you leave Tesco for any other reason before the end of your saving period then you’ll get all your money back. However, you won’t be able to buy shares at the discounted Option Price if you leave within three years of the option grant date.
You can miss up to 6 payments, but each one missed will mean your savings period is extended by a month, so your SAYE Scheme will mature later. If you go on maternity leave, or are absent for a prolonged period of time, you can make payments by a direct cheque to the Tesco Ireland Payroll Team.
If you choose not to purchase shares and have your SAYE Scheme savings returned to you, no Income Tax, PRSI or USC will be due.
What changes?
The October 2022 Scheme that we’re launching today operates in the same way as the January 2022 scheme.
As a reminder please see below:
There will be no tax-free bonus paid on either the three or five year scheme with this SAYE Scheme.
If you choose to buy shares at the discounted Option Price, with this SAYE Scheme, the gain will be subject to Income Tax at 40% in addition to PRSI at 4% and USC at 8%*. The gain occurs when the market value of the shares purchased exceeds the discounted Option Price.
The Income Tax, PRSI & USC (known as Relevant taxes) which are due on the purchase of shares from the new SAYE Scheme can’t be deducted through payroll as the Revenue Commissioners require each individual to settle their own taxes.
Instead the Relevant taxes must be paid to the Irish Revenue Commissioners by you within 30 days of the purchase date. A form RTSO1 will also need to be submitted to the Revenue Commissioners within the 30-day time period.
You will also be required to disclose details of the share purchase from the new SAYE Scheme in an annual self-assessment income tax return. Further information is available on www.revenue.ie.
As previously advised in January 2022, these changes won’t affect any SAYE schemes you are already participating in prior to 2022, but the changes will take affect for any SAYE schemes going forward.
*PRSI and USC will be due on the gain from any pre-2022 SAYE schemes you are already participating in. For these schemes, it will be deducted through payroll.
Three steps to join SAYE.
You can choose to save between €12 and €500 every four weeks. The amount you choose will be taken directly from your pay.
You can choose to save for a three or five year saving period. When you’ve chosen how much you’re going to save and how long for, you can use the calculator to see how much you'll have saved at the end!
Are there any risks?
Shares can go down in value as well as up; upon maturity the market share price could be lower than the discounted option price. In SAYE, your savings are protected. You’ll always get back what you’ve put in if you choose not to buy shares. There’s no charge to have your savings refunded in full.
Are my savings safe?
Yes, as your savings are held with Equiniti Share Plan Trustees, they will be covered by the UK’s Financial Services Compensation Scheme (“FSCS”). The FSCS can pay compensation to depositors if a bank is unable to meet its financial obligations. In respect of deposits, an eligible depositor is entitled to claim up to £85,000. For further information about the Scheme refer to the FSCS website or call the FSCS on telephone number +44 20 7741 4100. A copy of the Financial Services Compensation Scheme (“FSCS”) fact sheet is available in the Useful links section of this page.
Got a question?
Call the Tesco Shares Helpline on +44 121 415 0266 between 9am to 5pm, Monday to Friday, excluding public holidays in England and Wales.
You can also go to Colleague Help.
Choose between one of the two ways to join:
1 - Online:
Apply online via the Equiniti Employee Share Plans (ESP) Portal and follow the on-screen instructions.
If you haven’t registered for the Equiniti Employee Share Plans (ESP) Portal, you’ll need your Employee Number (shown on your payslip) and your activation code printed on your Invitation Postcard (or provided in your Invitation email if you are an office colleague).
When you’ve submitted your application you’ll need to review your confirmation page and print or save it until you get your Option Certificate, which will be emailed to you in December.
2 - Telephone:
Call 1800 813730* and follow the instructions.
At the end of the call please make a note of the confirmation number and hold this until you get your Option Certificate in the post in December**.
* Please note that standard rates apply.
** If you apply by Telephone your Option Certificate will be sent to you by post unless you have already registered with the Employee Shares Portal in which case you will receive your Option Certificate by email.
The discounted Option Price is:
£1.82
Key Dates.
Invitation
2022
2022
Invitation date and discounted Option Price set.
5pm closing date for applications.
Savings start
2023
2023
First money taken from your pay after tax.
Savings contract start date.
Maturity
2026
2028
Three year saving Scheme ends - shares available to buy at the discounted Option Price.
Five year saving Scheme ends - shares available to buy at the discounted Option Price.
* Because of the nature of the share price displayed on the site, Equiniti can't verify whether it's accurate or up-to-date. If Equiniti becomes aware that the end of day share price data isn't accurate or up-to-date then they'll remove it from the site or take other appropriate action. Equiniti isn't responsible or liable for either the accuracy or availability of the share price data on the site.
Equiniti Limited and Equiniti Financial Services Limited are part of the Equiniti group of companies and whose registered offices are Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA. Company share registration, employee scheme and pension administration services are provided through Equiniti Limited, which is registered in England & Wales with No. 6226088. Investment and general insurance services are provided through Equiniti Financial Services Limited, which is registered in England & Wales with No. 6208699 and is authorised and regulated by the UK Financial Conduct Authority.